Ethics and Professionals

canipungoel
Good Student
Posts: 27
Joined: Mon Feb 23, 2015 3:38 am

Ethics and Professionals

Postby canipungoel » Wed Mar 25, 2015 12:25 pm

Please explain Rumour and watch list along with example.

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Ethics and Professionals

Postby edupristine » Thu Mar 26, 2015 6:17 am

Hi, answer to your query is as follows:

A watch list is used by brokerage firms or companies where there is a suspect of irregularities, potential for insider trading or any other corruption. For example: a brokerage firm has a watch list for the companies indulged in regulatory violations.
A watch list can also be used as a monitoring tool for potential trading and investing opportunities of securities. For example: an investor is waiting for criteria to be met such as breaking a 52 week range before placing the order for a certain level of volume.

Rumor list is simply a list of those companies that have rumors of suspected transactions with the possibilities of insider trading. For example Brokerage firm has a list of companies which they are keeping a close eye on trading with the suspected transactions and possibilities of insider trading.


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